Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1887-12-14
THE SURPLuS s. PROBLEM

estimated at 1885,, O00, 900, and the expenditures
t316, 1871, 785, leaving ON estimated surplus of
S66, 1924 June 80. 1888. The Secretary esti-
mates the surplus for the year 1880 at $50, AGO.
206. In regard to the surplus revenue, the Sec
rotary says:iE q $a% 3|H s$ssiSE II
Taxation and currency reform were the
questions which my distinguished predecessor
deemed to be OF the most pressing Importance,
and to them he devoted large part of the
two annual reports which he made TO the Con-
gress. find the same subjects to be still the
most importa It Of all these to which
1t is my duty to cali your attention, and
1t is not necessary to do otherwise than follow
the general lines laid down by him in treating
them. Circumstances have heightened the
immediate urgency Of taxation reform as affect
Ing the surplus revenues of the Government.
The urgency Is SO great that the question Of
surplus revenues demands the earnest attention
OF both the legislative and executive branches
Of the Government" E-.94..g. 49,
The Secretary then gives the following ways
in which the receipts and. expenditures of the
Government may be made about equal: 49,
II. The purchase Of the interest bearing debt
of the Government.
az. Large expenditures by Government for
other purposes than the purchase of boz ", so
that they shall each year equal the taxation OF
that year. 500
80. Reduction OF the revenue from taxation
w tAC UAAOuub mutually CcQuISu " u06t NcCC8s
sary expenses.
''Al OF these expedients have in common
the one merit Of preventing the arrangement
to business which must follow boarding or lock-
lug up In the Treasury the circulating medium
OF the people,"
In regard to the first plan the Secretary
agrees with what the President in his message
said on the same subject. He then says:
II can not believe that it will adopt tho Sec
ond expedent, viz: the enlargement of Coy
eminent expenses simply to expend money
not otherwise call for the expenditure.
Reduction OF the revenue from tax
at on is the only fit remedy for the
evils that threaten the country. This
may be accomplished In various ways One
Is to reduce or abolish internal revenue
taxation. In favor Of this is the fact that in O
small part Of the Southern States the internal
presslve and is odious to the people OF those re-
glons; and the further fact that by its reduc-
ton the expenses of its collection might be
somewhat reduced"
The tn I'd expedient Is discussed at great
length, the decrease OF revenue from customs
by increasing duties to an almost proh1bitive
extent being disposed OF summarily. The Sec
rotary says that the objection to internal taxa
ton on the ground that 1t began during
is not in reality an objection. He
disposes of the abolition of the internal
tax by saying: ITO do away with
the whole revenue from internal taxes at pres
emit would SO diminish the revenues that it
would be necessary either to lay duties ON artt-
Giles of importation now free, such as tea and
coffee, or to suspend the sinking-tund require
mcnt, and also materially diminish other ex-
penses of government" .
The Secretary recommends again the ANAL
gamation OF the collection of customs dues and
internal taxes, and the passage by Congress OF
tho bill introduced two years ago and known as
the adm .nistratlon bill" revising the rules
and regulations imposing and collecting i'm
port taxes. s,- .,.,- ~
'"rhe surplus in the Treasury on December 1
amounted TO t55,258 701. and the Secretary esti-
mates that It VII aggregate S140O-O,OO0 on
June 50 next. On this point the Secretary
says: 'Ono use VIII Oh can be made OF tn.
money is to diminish taxation to such an ex-
tent that the annual revenue will be less,
for some years to come, than the appro-
priations; thus the accumulated surplus
would be used for ordinary expenses, and the
people would gain the greatest possible good
for it Doubtless, by the time this money was
spent In the pursuance OF this plan, the reve-
nues would have SO increased as to be equal to
the proper annual expenses. Experience
teaches that this would probably be the case.
In the meantime portion of this
money could lie in banks, where it
would be available for the business of the
country, and, as upon withdrawal from them
1t would ut once be returned to the channels of
business through Government payments, no
shock would be caused by such withdrawal
The recommendations for revenue reform are
sim ply rehash Of the Presidents message, or
rather we're exhausted in that document
After deducting the gold and silver coin held
for the gold and silver cert tioales in circula-
ton, It Is found that the Government owned
$50, 1883 less gold coin and s9,875 res less
standard silver dollars on Nov. !, 1857, than it
did on July l, 1885; during the intervening
period AZ, S8&8T standard silver dollars were
coined. AS there 10 still SO much coined gold
owned by the Government (SSAe57, 80 Nov.
1881 It has been thought best to allow the
gold to accumulate in the form Of bullion until
there Is need Of gold coin ..a. ...-
The statements of the Treasurer show that
after doducting he demand and trust liabili-
ties OF tho Government and the amount OF
money on deposit in National bank deposito-
ries, the net money in thu Treasury vaults was
&c., 496, 04.56 on June so, 1885; October 81 1884,
it was S40. ass, 961.77. 49,, sir r. -.
One OF the most interesting facts shown by
the foregoing statement Is the increase inthe
number OF standard silver dollars owned by the
Government and the increased use OF the same
money BY the people in the form Of silver GER
tihcates. The &, u and u certificates furnish
convenient currency, and It IL evident that
the future use Of the silver dollar will be al
most exclusively In that form.
; It is waste to coin and store any more silver
dollars at present. There Is no function which
those that are coined after this time Will proba-
bly, ever perform, except to lie in Govern
ment vaults and be bnsis upon which
silver certificates can be issued. It Is
seldom that any one wishes to have his SAL
yer certificate exchanged for the silver dol
lar itself; consequently limited number Of
coined dollars will perform the work of redeem
ing certificates. The S214 O0O, 700 which are now
in the treasury will more than suffice to re-
deem, as they may be presented from time to
time, the silver certificates that have already
been issued or that can be issued against all
the dollars which will be coined for years to
come under the present law *.S
THE law should be so amended" the report
says las to authorize the Secretary OF the
Treasury to issue certificates against the coin.
ing value Of the bullion bought and 10 coin
ouly such number Of dollars as he might deem
expedient hereafter. This would not restrict
in the loast degree the use OF the silver dollar
rs currency. The certificates would be equally
secure whether, representing coined dollars
lying IN vaults, or represonting bullion also
lying 4, VAULTS and which could be coined Into
dollars. .(y IN sS tss 1855
u 9'srhe accumulation 81 silver in the Treasury